DCH Health System expands charity care

By Lydia Seabol AvantStaff Writer

Published: Sunday, February 17, 2013 at 3:30 a.m.

Last Modified: Saturday, February 16, 2013 at 8:12 p.m.

TUSCALOOSA | Each year, DCH Health System gives away more than $120 million in care — including charity care, which its hospitals decide to provide for free, and bad debt cases, in which payment is never made.

The health system is changing who is eligible for that free care. The DCH Health System board of directors voted unanimously this week to increase the threshold for charity care. Now, anyone who is within 200 percent of the federal poverty level — or makes about $44,700 or less for a family of four — can qualify for charity care at DCH Regional Medical Center, Northport Medical Center and Fayette Medical Center. Previously, only people who were within 100 percent of the federal poverty level were granted 100 percent charity care, said Nina Dusang, DCH vice president of finance. Patients who were at 150 percent of the federal poverty level were granted 50 percent charity care, and patients who were at the 200 percent of the federal poverty level were granted 25 percent charity care.

Now, that sliding scale has ended.

But there is no financial impact to the health system, because in most cases, the patients who were within 200 percent of the federal poverty level could not pay their hospital bills, and so their bills were paid for by the hospital and considered “bad debt,” Dusang said.

“Historically, we weren’t getting any of that, because they couldn’t afford to pay,” Dusang said. “The reality is, with our economic conditions, that ‘bad debt’ is charity care that we are giving at the 200 percent level.”

The change is effective immediately.

Any patient who qualifies and is under the 200 percent poverty level can apply for charity care, either before their treatment or after.

“It’s encouraged to apply and identify the need as soon as possible,” Dusang said.

A portion of DCH’s operating budget is paid for through a percentage of the countywide sales tax. DCH Health System receives 10 percent of the county sales tax specifically to pay for the health care of the poor.

<p>TUSCALOOSA | Each year, DCH Health System gives away more than $120 million in care — including charity care, which its hospitals decide to provide for free, and bad debt cases, in which payment is never made. </p><p>The health system is changing who is eligible for that free care. The DCH Health System board of directors voted unanimously this week to increase the threshold for charity care. Now, anyone who is within 200 percent of the federal poverty level — or makes about $44,700 or less for a family of four — can qualify for charity care at DCH Regional Medical Center, Northport Medical Center and Fayette Medical Center. Previously, only people who were within 100 percent of the federal poverty level were granted 100 percent charity care, said Nina Dusang, DCH vice president of finance. Patients who were at 150 percent of the federal poverty level were granted 50 percent charity care, and patients who were at the 200 percent of the federal poverty level were granted 25 percent charity care.</p><p>Now, that sliding scale has ended. </p><p>But there is no financial impact to the health system, because in most cases, the patients who were within 200 percent of the federal poverty level could not pay their hospital bills, and so their bills were paid for by the hospital and considered “bad debt,” Dusang said. </p><p>“Historically, we weren't getting any of that, because they couldn't afford to pay,” Dusang said. “The reality is, with our economic conditions, that 'bad debt' is charity care that we are giving at the 200 percent level.”</p><p>The change is effective immediately.</p><p>Any patient who qualifies and is under the 200 percent poverty level can apply for charity care, either before their treatment or after.</p><p>“It's encouraged to apply and identify the need as soon as possible,” Dusang said. </p><p>A portion of DCH's operating budget is paid for through a percentage of the countywide sales tax. DCH Health System receives 10 percent of the county sales tax specifically to pay for the health care of the poor.</p><p>Reach Lydia Seabol Avant at 205-722-0222 or lydia.seabolavant@tuscaloosanews.com.</p>